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Home My WebLink About05 AUTH TO PURCH SYSTEM 04-15-08MEETING DATE: APRIL 15, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: RONALD A. NAULT, FINANCE DIRECTOR SUBJECT: AUTHORIZATION TO PURCHASE REMITTANCE PROCESSING SYSTEM SUMMARY: Authorize City staff to purchase a remittance system for use by the Finance Department. The remittance processing system electronically codifies and deposit checks. The current R.T. Lawrence remittance processing system is ten (10) years old and is beyond its useful life. RECOMMENDATION: It is recommended that the City Council authorize the Finance Department to purchase the TS4120 remittance system from Creditron in the amount of $23,100, which includes $4,000 for the first year's maintenance. FISCAL IMPACT: Staff budgeted $25,000 in Fiscal Year 2007-08 budget for the purchase of a remittance system. The TS4120 remittance system cost $19,100 and the annual maintenance cost is $4,000. The total cost including annual maintenance is $23,100. BACKGROUND: The remittance system is used to process checks received for payments of water bills, business licenses, plan check fees, and various City services. The proposed purchase replaces the 10-year old R.T. Lawrence system. The R.T. Lawrence system has become obsolete and more expensive to maintain. New banking technologies will allow City staff to expedite the remittance process. Staff contacted Springbrook, Water Service's billing software for a list of vendors that offer a compatible remittance system. Page 2 As part of the purchasing process, City staff contacted several vendors. The proposals are listed below: VENDOR SYSTEM COST Bank of America $1,500 AudioTel $15,200 Creditron $19,100 R.T. Lawrence No Bid ANNUAL MAINTENANCE COSTS/FEES $2,200 $2,800 $4,000 Due to its limitations, City staff did not select the Bank of America remittance system. Inquiries for imaged checks greater than thirty-one (31) days can only be researched by contacting the bank's customer service. The system can only be accessed via the Internet and check images are stored centrally at the bank. Current laws require business checks to be imaged and encoded differently than personal checks. The system does not differentiate between business and personal checks, which requires additional staff time to separate the checks into two (2) processes. Additionally, the system is in the conceptual stages with an anticipated product completion of June/July 2008. The AudioTel system only offers a two (2) point check process that compares the hand written courtesy amount or the legal amount on a check against the stub, which increases accuracy. The system does not allow for the comparison of payments versus the past due and turn-off lists. This feature prevents staff from turning-off water services to customers that have recently submitted payments. The system offers limited account designations for checks that pay multiple water services accounts. The system offers unlimited data retention ability. The Creditron remittance system is recommended by staff due to its flexibility and usability. The system offers a three (3) .point check process that compares the hand written courtesy amount and legal amount on a check against the stub for the highest degree of accuracy. The system offers Water Billing the ability to compare recent payments to past due and turn-off lists. It also offers unlimited account designations for checks that pay multiple water accounts. Additionally, the system offers interoperability with the City's electronic document retrieval software, Laserfiche, with unlimited data retention ability. The integration with Laserfiche will reduce training costs as staff will not need to be trained on a new data retention software. The system will also decrease the processing time for checks from the current two (2) business day deposit to a next business day deposit. Page 3 As a result of the software evaluation, Creditron provides the most robust remittance system for the City. The system allows City staff to be more efficient in the processing of payments and increases staff's customer service ability. The increased interoperability allows for ease of data recovery and reduces training costs. Ronald A. Nault Director of Finance Sean Tran Senior Financial Analyst Attachment: Attachment A -Remittance system quote from Bank of America Attachment B -Remittance system quote from AudioTel Attachment C -Remittance system quote from Creditron Attachment A .~ :~. i~d?1 ~S x~1~~5~°e!~#?-G x '~{fit ~-r y. =a .t5~~t.~ Gity of Tustin ,r~~rore nett~strsFnvlcB Tune Fees ~ner Purchase srnentation Fee Monthly Fees Monthly Maintenance Monthly RDS License Fee -Per Workstation ~Transm~ssan Deposit RDS Image Processing IRD Detwsrted hems Currant Check Prnoessing Fees Rernots Deposit Fees BALANCE VOLUME UNiT PRICE TOTAL PRICE REOUiREMENT ~ 51.500.00 31,SOO.Q0 51,038.896.25 0 425.00 $0.00 51,500.00 51,038,896.2 1 $50.0000 350.00 334,629. t 510.0000 $10.00 $6.925. 2 t $1.0000 S2 t .00 314.544.5 a,a99 50.0500 5224.95 4155,799.81 2,699 50.0500 St 34.95 5440.90 $ 5303.366.2 2f~44 St78.9o 542,1339.71 Eamirx,}s Aibwance Rate z (1 -reserve requirerrtent) x days in penod As at Deoemtser 2007: 56925975 = 3651{0.0170 x (t - t0}] x 31 x 4t .00 After 12-month warranty expires, there will be a 3t 0 monthly charge for Scanner maintenance support and nect day hot swap serwce. Assumes 3096 of items are never created as iRDS Attachment B ' . . . 1 City of Tustin E-mail: jinterrante@tustinca.org Julie Interrante Telephone Number: (714)573-3000 300 Centennial Way Fax Number: Tustin, CA 92780 Account Manager: Roslyn Brown ~ • ~•~ TX CISV Annual Final Qt Govt. Price Fee Pricin AudioTel Licensed Software: RemitPlus 7 1 $6,450 $1,290 $6,450 Annual License -up to 150,000 Items/Yr Firebird SQL Included AudioTel Computer: 3 Years (Parts & Labor) $1,455 Dell P4 3.0 GHz, 512 MB RAM, Network Card, DVD-ROM,17" LCD Monitor. Type of Scanner: (see note below) Canon CR-180 1 $3,602 $3,602 Ink Cart. & 1st Year's Maint. Incl., subsequent year's fees available from equip vendo . Software Interface to Capture Device: ScanForm (no charge) Additional Options: Bar Code License (per scanner) $250 CheckMate Jogger (Single) $480 ACH Deposit (transaction fees additional) 1 $1,500 $300 $1,500 ($0.12 ACH Personal, $0.15-$0.35 IRD Check 21 Fees) - Additional Jobs $2,500 CAR/LAR -Character Recognition Module Paid Annually 1 $1,200 $1,200 $1,200 Optional Microsoft SQL Interface 1 $1,500 $1,500 Flat Rate On Site Installation Fee Plus Expenses 1 $900 $900 Flat Rate Remote/WebEx Installation Fee $450 Terms: Balance due upon Completed Installation Annual Fees beginning 2nd Year Grand Total: $2,790 $15,152 Estimated Lease Cost with $1.00 Buy-Out Monthly Payment --- First Year Annual Fees Waived 60 Months $359.56 48 Months $421.68 36 Months $528.20 24 Months $744.57 Initials • Sian and Return this "Order Form" with Deposit to place your order: Officer & Title: Date: Print Name of Company: Ver. 02105 SD AudioTel Corporation Phone (800) 250-4486 CONFIDENTIAL INFORMATION 15510 Wright Brothers Dr. Fax (972) 239-4511 Addison, TX 75001 Attachment C CREDITRON CORPORATION SYSTEM PRICE QUOTATION SUMMARY FOR City of Tustin 300 Centennial Way Tustin, CA 92780 No. of Systems: 1 HARDWARE SUB-TOTAL: $3,795.00 APPLICATION SOFTWARE SUB-TOTAL: $17,640.00 SERVICES SUB-TOTAL: 4 650.00 TRAVEL EXPENSES WILL BE BILLED AS INCURRED. TOTAL SYSTEM PURCHASE PRICE: $26,085.00 Less Util Pkg. Discount $3,500.00 Less Free Upload for Daffron, SE Data, HTE, CCC 8~ NIS $3,500.00 PURCHASE PRICE AFTER ALLOWANCE: $19,085.00 ANNUAL HARDWARE MAINTENANCE: ANNUAL SOFTWARE MAINTENANCE: TOTAL ANNUAL MAINTENANCE: TRAVEL EXPENSES NOT INCLUDED $390.00 3 528.00 $3,918.00 NOTE: Prices do not include applicable sales taxes. Terms are: 30% With Initial Order $5,725.50 Upon Receipt On Hardware Delivery $8,709.50 Upon Receipt Final, From Installation $4,650.00 Net 30 Customer provides their own 'Full Size' PC style, which must meet Creditron's specification. PC will be shipped to Creditron at customer's expense for pre-staging. After pre-staging, PC is shipped back for customer to unpack and plug in. Installation and training is performed at the customer site (travel expenses extra. Account Manager: Matthew J. Weirauch Installer Name: Date: System Price Quotation Detail City of Tustin DOCUMENT PROCESSING HARDWARE: Qty Product Code Description Unit Price USD Extended Price 1 7728-4121-9090D TS4120 USB 120DPM W/ Rear Inkjet E $3,495.00 $3,495.00 1 G625-4000-000OD TS400 WiselP Platform Software - Dep $300.00 $300.00 HARDWARE SUB-TOTAL: 3 795.00 APPLICATION SOFTWARE: Qty Product Code Description Unit Price USD Extended Price 1 SCM-800 MicroPak RP$2000, Image Inquiry ( $5,500.00 $5,500.00 1 SCM-811-B MicroPak CAR/LAR for pers/bus (2 $3,640.00 $3,640.00 1 SV-UPL RP$ Host Upload $3,500.00 $3,500.00 1 SCH-840 RP$ 2000XP Remote Deposit - AR $5,000.00 $5,000.00 APPLICATION SOFTWARE SUB- X17,640.00 Note: For those purchasing the remote deposit module, readiness among banks may be dependent on file format requirements. Therefore system implementation may be completed before Remote Deposit can be fully utilized. In these cases, Creditron reserves the right to invoice for completed elements and will invoice separately for the Remote Deposit Module once it is accepted as ready to go into production by the bank System Price Quotation Detail City of Tustin SERVICES: Qty Product Code Description Unit Price USD Extended Price 1 SV-MSITE MicroPak Onsite Implmntn and Trai $4,250.00 $4,250.00 1 SV-SHP41 Shipping, TS4120 $400.00 $400.00 SERVICES SUB-TOTAL: 4 650.00 FLAT RATE TRAVEL (If quoted b ANNUAL MAINTENANCE: Hardware Maintenance: Qty Product Code Description Unit Price USD Extended Price 1 7728-4121-9090D TS4120 Scan Maint-Depot Next Da $345.00 $345.00 1 G625-4000-000OD WiselP 7728 Maintenance - Exchan $45.00 $45.00 HARDWARE MAINTENANCE (NE $390.00 ZONE (1-5): 1 $0.00 ZONE OR EXTRA COVERAGE CH HARDWARE MAINTENANCE TOT $390.00 ANNUAL SOFTWARE MAINTENA $3,528.00 TOTAL ANNUAL MAINTENANCE: $3,918.00